Capital One Financial Corp. saw charge-off rates for its domestic credit card business fall to the lowest mark since the bank acquired HSBC's card business last year.

For the second quarter ended June 30, Capital One announced net income of $1.1 billion. The banking group's pre-tax income for the period exceeded $1.8 billion, a 5.5% improvement from the second quarter 2012 and nearly 11% higher than 2013's first quarter ended March 31.

Card purchase volumes also jumped nearly 13% quarter-on-quarter allowing the bank to earn more fee revenues.

"We delivered solid performance across each of our businesses during the quarter, and we continue to generate significant capital," said Richard D. Fairbank, chairman and CEO. "We will continue to tightly manage costs and credit quality, drive resilient growth in businesses we are emphasizing and focus on returning capital to our investors to deliver sustained shareholder value."

All comparisons below are for the second quarter compared with the first quarter, unless otherwise noted. 
Second Quarter 2013 Income Highlights:

    •    Total net revenue increased 2 percent to $5.6 billion
    •    Total non-interest expense increased 1 percent to $3.1 billion
    •    Pre-provision earnings increased 2 percent to $2.6 billion
    •    Provision for credit losses decreased 14 percent to $762 million
    •    $183 million charge for mortgage representation & warranty expenses, primarily in discontinued operations

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